AkzoNobel Readies A Restructuring | Chemical & Engineering News
Volume 89 Issue 44 | p. 20 | Concentrates
Issue Date: October 31, 2011

AkzoNobel Readies A Restructuring

Department: Business
Keywords: cost reduction, raw material prices, coatings

AkzoNobel plans to reduce costs through a three-year restructuring program that is expected to improve annual earnings by nearly $700 million. Difficult economic conditions and raw material price inflation are driving the cost-cutting effort, the Dutch firm says. An executive committee formed earlier this year has compiled 20 master plans with more than 100 detailed initiatives expected to cost nearly $590 million by 2014. More than 70% of the earnings improvements will come from the firm’s decorative and performance coatings businesses. The balance will come from specialty chemicals. Akzo continues to expand in China, where it will spend $83 million to build a 25 million-L automotive refinish coatings facility in Changzhou by 2014.

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